(Wang Qiuyan/Full Foreign Report) This year’s most tragic industry leader is global electric vehicle maker Tesla, whose stock price has plunged nearly 70% so far this year. But the sharper the stock price declines, the happier those waiting to become Tesla shareholders are. Korean retail investors continue to hunt for funds, while global market investors are waiting to see if Tesla drops below the threshold. of the $100.
Affected by the deteriorating COVID-19 epidemic in China, Tesla (Tesla) Shanghai Plant has extended production cuts. Reuters reported that the plant is expected to resume work for just 17 days in January next year, and the Lunar New Year holiday will be extended. This negative impact caused Tesla’s stock price to plunge 11.4% on 27, a cumulative decline of 44% from December to 27.
Musk asks Tesla employees not to be influenced by the stock price
What is even more surprising is that Tesla’s cumulative decline so far this year has plummeted by 68% and Tesla CEO Elon Musk’s increasingly exaggerated speeches, as well as multiple roles, including Twitter (Twitter) and SpaceX The execution of the CEO position has caused the outside world to believe that he has no skills and poor management skills.
However, Musk has remained calm in the face of Tesla’s stock price crash and outside criticism. According to US financial media outlet CNBC citing internal Tesla letters, “Musk requires employees to maintain excellent job performance over the long term without being affected by the sharp decline in the company’s stock price. We have to believe that Tesla will be the most valuable company on the earth .”
Tesla was sold by most of the shareholders and the stock price fell completely, but there are still a large number of Korean retail investors who continue to boldly undertake. As of August, South Korean retail investors held up to US$150 billion in Tesla shares, with an ownership ratio of up to 1.6%, making them the seventh largest shareholder. According to the Korea Securities Depository Administration statistics, December is the third month that Korean retail investors continued to buy more than Tesla shares. This year, the amount of Tesla shares purchased is about 2.8 billion US dollars .
South Korean retail investors began buying Tesla shares between 2020 and 2021. Such active purchases are related to Korean investors’ preference to invest in high-risk stocks and cryptocurrencies, hoping to find ways to get rich quick.
The “Korea Herald” reported that the popularity of Tesla shares has a very good relationship with the depreciation of the Korean won. In September this year, the Korean won fell to a record high from the financial tsunami. 1 US dollar can be exchanged for 1,430 won, and has now returned to around 1,300.
I didn’t understand the fundamentals, big sales by corporate entities, big buys by retail investors
However, Tesla’s shares have fallen too much, which has caused dissatisfaction among some Korean retail investors in Tesla who still hold shares, especially doubting whether its investment value is not as good as that of Korea’s leading technology company. South, Samsung Electronics. the price is down about 27% this year, significantly lower than Tesla’s. The share price is down 68%.
Viraj Patel, senior strategist at Vanda, a market research firm, said retail investors bought more Tesla shares in the past six months than in the previous 60 months combined. Fundamentals signal this is a seller’s paradise.
The market waits to see when Musk stops trading
According to FactSet data, the Tesla stock price’s Relative Strength Index (RSI) fell to a record low of 16.56, which is in line with the fact that the RSI fell below 30 and is in a state of oversold. Many investors want to take advantage of Tesla’s stock price falling below $100 to buy, expecting a quick rebound.
However, looking at the past few months, Tesla has been oversold many times, but the stock price did not rise rapidly when the RSI rebounded, but continued to weaken. Some market analysts have warned that Tesla’s stock price may not only dip below the $100 mark, but will continue to fall.
UBS analyst Ozkardeskaya (Ipek Ozkardeskaya) pointed out: “It seems that confidence has evaporated and the Tesla fairy tale has suddenly ended. Investors want to see how the impending recession will affect the demand for electric vehicles, such as the competition from other electric car manufacturers will eat up Tesla’s market share and when Musk stops doing nothing.”
Original url of Lin Media:Tesla’s fairy tale is over! Share price plunged by nearly 70% is not enough for analysts: fear of breaking the $ 100
